Arista Networks Could Post A Surprise In Q2

Arista Networks is well-positioned for Q2 earnings, with optimism driven by strong demand for its AI connectivity and Ethernet switching solutions. Recent management commentary and supply chain updates suggest CY26 gross margins may bottom at 62-64%, with potential for upward guidance revision. I am reiterating my Bullish rating on ANET and raising my price target to $209, reflecting anticipated EBITDA multiple expansion and accelerating growth. Key risks include hyperscaler capex guidance from major customers; Q2 and Q3 revenue and EPS targets; and AI revenue progress as critical monitoring points.

Arista Networks, Inc. (ANET) is all set to report earnings within ~4 weeks, and the recent price action since June is an encouraging sign of the optimism that could keep building up for